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Effective management and utilisation of plant history data can considerably improve plant and equipment performance. This rationale underpins statistical and mathematical models for exploiting plant management data more efficiently, but industry has been slow to adopt these models. Reasons proffered for this include: a perception of models being too complex and time consuming; and an inability of their being able to account for dynamism inherent within data sets. To help address this situation, this research developed and tested a web‐based data capture and information management system. Specifically, the system represents integration of a web‐enabled relational database management system (RDBMS) with a model base management system (MBMS). The RDBMS captures historical data from geographically dispersed plant sites, while the MBMS hosts a set of (Autoregressive Integrated Moving Average – ARIMA) time series models to predict plant breakdown. Using a sample of plant history file data, the system and ARIMA predictive capacity were tested. As a measure of model error, the Mean Absolute Deviation (MAD) ranged between 5.34 and 11.07 per cent for the plant items used in the test. The Root Mean Square Error (RMSE) values also showed similar trends, with the prediction model yielding the highest value of 29.79 per cent. The paper concludes with direction for future work, which includes refining the Graphical User Interface (GUI) and developing a Knowledge Based Management System (KBMS) to interface with the RDBMS.

To improve organizational performance and sustain a competitive advantage many Australian businesses have begun to embrace e‐commerce. For example, businesses from the automotive, banking, insurance and retail industries have been able to leverage the benefits of information and communication technologies. Yet, those from the construction industry have been slow, perhaps even reluctant, to implement information and communication technologies to support ecommerce. Thus, this paper aims to determine the barriers that small‐medium sized contractors are experiencing when confronted with the need to implement e‐commerce to sustain their competitiveness. Unstructured interviews were undertaken with managers from 20 small‐medium sized contractors from the State of Victoria in Australia, which had annual turnovers ranging from $1‐50 million. The financial, organizational, technical and human barriers that were identified from findings are presented and discussed. The paper concludes by proposing strategies that small‐medium sized contractors may adopt if they to leverage the benefits of e‐commerce.

Many construction organizations have begun to acknowledge that to improve the performance of their supply chains they need to establish long‐term relationships with suppliers so that mutual dependencies can be created. However, to create economic value, as well as support interorganizational connectivity in the supply chain, an e‐business infrastructure supported by Internet and Web technologies is required. Using two case studies, this paper demonstrates how the adoption of an e‐business strategy can be used to create value throughout the supply chain in construction. Interviews with the information technology managers involved with the two case studies were undertaken to provide insights into the benefits and limitations of the technologies used to service business‐to‐business (B2B) and business‐to‐consumer (B2C) activities. In addition, the paper suggests how different Internet and Web‐based technologies can be used by construction contractors, particularly small‐ and medium‐sized enterprises (SMEs) to gain a competitive advantage in their respective marketplaces.

The construction industry is highly fragmented and adversarial in nature, which has resulted in it being criticized for its poor project performance and lack of innovation. To improve performance, particularly inter‐organizational relations, organizations need to consider the formation of alliances with their project partners. Some construction organ‐ izations are beginning to initiate short‐term alliances with their customers and suppliers as part of a supply chain management strategy. However, such short‐term alliances inhibit feedback, which in turn supports learning and the development of mutual trust and cooperation. It is proffered that construction organizations should consider developing long‐term alliances, so as to enable parties to form learning alliances. The implications of forming different types of strategic alliances/partnering in construction are discussed. An inter‐organizational model that can be used to support learning and is founded on the principles of total quality management (TQM) is described. A case study is used to demonstrate that cooperative relationships can be used to cultivate a culture for reflective learning and mutual trust, beyond merely project‐specific performance improvements.

The construction industry resides in a period of intense introspection as it seeks to improve its performance and productivity. Yet, yielding such improvements requires each individual organization to adopt a customer value strategy that enables organizational learning to become an integral part of an organization’s fabric. This paper reviews the elements of a learning organization within the context of the construction environment. A conceptual framework that can provide managers with a better understanding of how a learning organization in construction can be nurtured is presented. Embodied within this framework are factors such as strategic shift, organization transformation, customer orientation and quality centered learning. The paper concludes by suggesting that the key success factor for each individual organization may no longer be a matter of size or the number of assets, but the amount and quality of experience it can apply and manage.

Worldwide, major projects often make the headlines as they suffer from a fourfold whammy of delays, cost blowouts, benefit shortfalls and stakeholder disappointments. It seems that error and bias can explain their underperformance. Which overarching explanation outweighs the other? It is the question this paper aims to address.

Insights are garnered from decades of research on thousands of major projects in developed and developing countries worldwide. In particular, two high-profile project cases, the Veteran Affairs Hospital in Aurora, Colorado (USA) and the Philharmonie de Paris (France), are explored.

The case projects show that error and bias combine to best explain project (under) performance. Applying best practices or debiasing project cost and benefit estimates is insufficient to prevent cost blowouts and benefit shortfalls. The confrontation of the two overarching explanations is not merely platonic. It is real and may lead to a media and legal battle.

This viewpoint calls practitioners to transcend the error versus bias debate and reconcile two key characters in the world of major projects: the “overoptimistic” who hold a bias for hope and firmly believe that, despite error down the road, many projects would, in the end, “stumble into success” as creativity may come to the rescue; and the “overpessimistic” who hold a bias for despair and think many projects should not have been started.

Adversarial contracting methods are used for most public infrastructure procurement and timely delivery on budget remains a problem. In the past 20 years, OECD countries have adopted a number of alternative procurement methods that are based on collaborative principles including public private partnerships, long-term outsourcing arrangements and relationship/alliance contracts. We review the theoretical principles that operate for both adversarial and collaborative contracting methods. We identify the characteristics of non-adversarial contracting methods such as the output specification, qualitative selection criteria, the alignment of incentives, discrete allocation of residual control rights, life cycle costing, and risk-weighted value for money measurement that are delivering better procurement outcomes for government.

Price reliability for complex and highly complicated infrastructure projects is problematic. Traditional project delivery approaches generally fail in achieving targeted end cost reliability. However, integrated project delivery (and particularly Alliancing), develop a far more reliable and robust project delivery plan and outturn time-cost targets. This paper aims to explore why this may be the case.

This case study investigated the project design, planning, cost/time estimation approach and how risk/uncertainty was dealt with. Five senior project delivery experts from an organisation that delivers multi-billion-dollar infrastructure projects in Australia were interviewed. These five experts collectively had 100+ cross-disciplinary experience years delivering complex infrastructure projects.

Alliancing adopts a radically different approach to project design, time/cost planning and risk assessment and management to traditional project delivery approaches. Key findings explain how the project alliance agreement designs-in processes that maximises team integration and collaboration. Analysis concludes that design thinking is used to craft and shape collaborative behaviours and project governance. Additionally, including project owner and facilities operator representatives in the project team adds valuable insights, expertise and knowledge contributing to planning reliability.

This study is exploratory and focussed on complex infrastructure projects so findings cannot be generalised.

We unpack Alliancing processes that develop the target outturn cost plan, comprising a holistic and realistic plan to design a project to meet expected project outcomes. This case study may serve as an exemplar for complex project delivery.

This paper illustrates how Alliancing more effectively delivers best value than traditional procurement approaches through its TOC-TAE processes.

The paper contributes to the scant existing academic literature analysing these processes. Its novel contribution is explaining how Alliancing treats unexpected events that in traditional delivery forms trigger expensive and time-energy-wasting disputation. This case study may serve as an exemplar for complex project delivery.

A model for an e‐business infrastructure that can be used to support supply chain activities in construction is proposed. A virtual network structure that acts as a value‐added component of an e‐business infrastructure is used to improve communication and coordination, and encourage the mutual sharing of inter‐organisational resources and competencies. The e‐business infrastructure used to support the proposed network structure and the human, organisational and cultural barriers that may be encountered are presented and discussed. It is proffered that the proposed e‐business model not only will be of benefit to those organisations which operate in the construction supply chain, but also may be fit for other types of business‐to‐business e‐commerce when cooperation between business partners is necessary to improve organisational performance and gain a competitive advantage

The business environment of construction organisations has undergone significant change over the last 50 years. As a result, construction management has had to respond to issues such as increasing levels of client expectation, globalisation of the construction economy, cut‐throat competition, and tight margins, plus the “inherent” obstacles to operating in the sector, such as separation of design and construction, fragmented production methods, adversarial relationships, and a reluctance to innovate and take up information technology. Furthermore, the problems of poor and unstructured training, multi‐tiered management systems, and poor communication provide less than optimal conditions for achieving high quality products in good time and to budget. One approach to addressing these issues is through the concept of employee empowerment. This paper presents an overview of the empowerment concept in the context of construction management, highlighting the hurdles, an implementation process, and achievable benefits.